Cotton yarn prices likely to rise further in north Indian markets

Trade sources from Ludhiana said that cotton prices were touching ₹83,000 per candy today. Mills have increased their offer prices, so cotton yarn was sold at higher price in Ludhiana market. Traders said that current market trend was not supportive for any price rise but spinning mills were not interested to sell yarn without passing current hike of cotton. The price of cotton has increased by around ₹3,000-4,000 per candy in the last 8-10 days. Domestic cotton prices found support from increase in ICE cotton which increased after the release of a USDA report which showed higher export sales of cotton from the US.

In Ludhiana, cotton yarn prices gained ₹5-10 per kg due to costlier cotton. However, demand remained weak amid limited trade. 20 and 30 count cotton yarn in combed variety were traded at ₹350-360 per kg and ₹360-380 per kg respectively. 25 count combed yarn was also sold higher at ₹355-375 per kg. But carded yarn in 30 count was quoted flat at ₹320-350 per kg, according to Fibre2Fashion’s market insight tool TexPro.

Delhi market noted steady trend due to lower demand in the last couple of days. Cotton yarn was traded steady despite better trading activities. 30 count combed yarn was traded at ₹340-360 per kg, 40 count combed at ₹380-405 per kg, 30 count carded at ₹335-345 per kg and 40 count carded at ₹350-365 per kg, as per TexPro. 10 count weaving (O/E) yarn was quoted at ₹120-125 per kg, while 16 count weaving (O/E) at ₹160-165 per kg.

The recycled yarn market of Panipat also witnessed steady trend. But traders said that virgin cotton yarn is getting support from the natural fibre which may support recycled yarn prices. The demand of recycled yarn was average, but it may improve in next month when manufacturers come in the market for restocking. Recycled cotton yarn prices also remained steady, but trade activities were better. 10s recycled yarn (white) was traded at ₹95-100 per kg, 10s recycled yarn (coloured- high quality) at ₹95-100 per kg, 10s recycled yarn (coloured- low quality) at ₹65-70 per kg and 20s recycled yarn (coloured) at ₹125-140 per kg. 10s optical yarn was traded at ₹100-110 per kg in the market.

In the global market, ZCE cotton yarn May 2022 futures traded up by CNY 230 to CNY 28,560 per ton and September 2022 traded higher by CNY 85 at CNY 27,710 per MT today. ZCE cotton March gained CNY 135 to CNY 21,595 per MT and May contract traded up by CNY 275 to CNY 20,525 per MT. ICE cotton futures extended upside in the electronic trading today after ending higher on Friday.

In line with the positive trend in the global market, domestic prices surged amid increased buying by the mills. Cotton prices surged by ₹1,000 to ₹1,100 per candy in North Indian states today, while daily arrivals declined in mandis. In Punjab, cotton was quoted at ₹81,000-82,500 per candy. In Haryana, cotton prices were quoted in the range of ₹78,500-81,400 per candy. In Upper Rajasthan, the prices were ruling at ₹81,800-82,800 per candy. In Lower Rajasthan, cotton was priced at ₹75,400-77,400 per candy.

ALCHEMPro News Desk (KUL)